This paper describes the evolution of China’s agricultural policies, principally those dealing with food supply, increasing farmers’ incomes and restoring degraded agricultural lands, and their impacts on payments for ecological services. China has many unique environmental, demographic, social and economic features. It is the world’s fourth largest country and the most populous, supporting 22% of world’s human population. It is biologically diverse, containing 10% of the world’s higher plant species and 14% of animal species, many of them endemic. This diversity reflects the wide variety of ecosystems and diverse climates expected for such a large area. China’s large and multi-ethnic human